International Business News

The U.S. stocks closed lower Tuesday, penalized by the publication of statistics of home resales already been added to fears surrounding the health of perennials the world's biggest economy.

The Dow Jones closed with a loss of 133.96 points, or 1.32%, to 10,040.45. The Standard & Poor's 500 broad, fell 15.49 points, or 1.45%, to 1051.87 while the Nasdaq Composite Index ended down 35.87 points (-1.66%) to 2123 76.All three indexes have ended at levels unprecedented in seven weeks.

Sales of existing homes in the United States in July suffered an unprecedented fall that brings them back to their lowest level in more than 15 years, a deteriorating just confirmed that the U.S. recovery loses much of its momentum.

Shortly before the publication of these statistics, Charles Evans, president of the Federal Reserve Bank of Chicago, said that the risk of a relapse into recession in the U.S. economy had increased in the last six months even if such an outcome is unlikely in his eyes, a recovery "modest" is being said.

Home resales fell 27.2% last month compared to June to 3.83 million units annualized, the lowest level since May 1995, announced the National Association of Realtors (NAR) The American Federation of Estate Agents. Economists polled by Reuters were expecting a much less pronounced decline from 12.0% to 4.7 million.

This statistic has led to a decline in property values.The PHLX Housing Index was down by 1.05%.

"The economic statistics of the day were added to a long list of evidence showing that there is a slowdown in the economy," said Michael Sheldon of RDM Financial.

"Investors were expecting a mediocre statistics, but today's figures have revealed the extent of the disaster."

These events have however not been taken on renewed vigor of the activity on the front of mergers and acquisitions.

Hewlett-Packard and Dell continued to struggle to capture the data storage specialist 3PAR.According to Bloomberg, Dell is preparing to improve its offer after Monday HP has $ 1.6 billion on the table.

3PAR has closed up 3.64% to 27.04 dollars while HP has lost 1.65% to 38.39 dollars and Dell fell 2.97% to 11.58 dollars.

The medical equipment maker Medtronic has also plunged 10.80% to 31.21 dollars after reporting a drop in sales and lowered its forecast.

The announcement weighed on the sector and the Health Sector Index S & P lost 2.03%.

The vagaries of the economic recovery and the prospect of new banking regulations temper the optimism of investors after quarterly results exceeded expectations published this week by several major European banks.

Reversals of impairment greater than expected second quarter have offset the slowdown in investment banking, penalized by the threats of contagion of the crisis of the Greek sovereign debt investors who scalded.

Societe Generale has reported a profit of nearly one and half times higher than expected, and Standard Chartered, which operates mainly in Asia, has released a record result.

Lloyds has returned to the green to the first half thanks to a halving of asset impairments.

However, European banks have not divested of their caution, particularly when faced with the consequences of coming prudential reforms.Although the deadlines for application of solvency ratios so-called "Basel III have been repulsed, concerns remain about them.

"There is fragility in the global economy and nervousness in financial markets," said John Peace, Chairman of StanChart, adding that British banks were particularly disadvantaged by the rules on pay, taxation and financial regulation.

Most European banks which have published their results on Wednesday have followed the trend shown Monday by BNP Paribas and HSBC with a lower level of bad debts.

However, even if SocGen gained 0.6% at the Paris Stock Exchange in the afternoon, StanChart lost 6.3% to the London Stock Exchange.

The quarterly results and the prudence of banks are an excuse for profit taking while the lure investors to the sector had been increased by the publication, July 23, heartening results of resistance tests suffered by banks in the European Union.

The European banking stocks index yielded 1.2% on Wednesday afternoon, after having won over 20% since early July against 10% for pan-European Stoxx 600 index – and nearly 9% since the release of stress tests .

"The results show that emerging markets like China, India and Brazil are areas where we can go to generate meaningful activities," said Ted Huang, a fund manager Pinebridge Asia High Yield in the results of StanChart.

Against the trend, the German Postbank increased its provisions for impairment related to risky real estate loans and has revised downwards its objectives.

Allied Irish Banks The Irish, partly nationalized, has also reported a doubling of losses in the first half while making clear progress towards its recapitalization.

These two facilities join the Italian UniCredit, the first credit agency in Central and Eastern Europe, which was published on Tuesday a quarterly profit well below consensus, hit by a dramatic drop in trading revenue.

Boeing said that delivery of the first 787 Dreamliner could be delayed until early 2011 instead of the fourth quarter of 2010, flight tests have revealed some difficulties.

Speaking at a teleconference with the press, Scott Fancher, general manager Dreamliner program, however, said the decision to postpone the delivery of first aircraft from All Nippon Airways (ANA) has yet been taken .

"We found some difficulties that challenge our schedule a bit," he said adding that these difficulties were related to issues of "configuration tools".

Around 17:30 GMT, Boeing retreated 0.51% to 64.42 dollars, wiping out a portion of losses just after the announcement of a possible further delay, while the Dow Jones yielded 0.57 %.

If ever the first delivery was postponed again, the behind the original schedule – May 2008 – would exceed two and a half years.

The beginning of the production launch of the plane was delayed five times in three years and the first flight, which occurred in December 2009, had been postponed six times, due to both a lack of parts, problems design and a two-month strike that affected Boeing plants in 2008.

"We want to play the card of caution and say it could be that delivery is delayed to the first part of next year. But at this point, our schedule still provides a delivery by the end of the year "Scott Fancher continued.

Moments earlier, Boeing said it had revised upwards its forecast of orders for new aircraft by 2029, thanks to an increase in the number of LCCs, the replacement of less fuel efficient aircraft and economic recovery.

The U.S. aircraft manufacturer estimates that 30,900 the number of orders over the next two decades, a figure up 6.5% compared to the forecast of 29,000 made last year.

Negotiations on the reform of financial supervision has failed Wednesday and European agreement on the text has been postponed until September, show several European sources.

"There will be no further talks before late August or early September and I think we can say that the talks failed," a parliamentary source said.

"The core issue is Article 6 which concerns the principle of direct supervision exercised at European level by the new supervisors," the source said adding that the objective was to find a consensus with the all states, including Great Britain.

A second source confirmed the report and discussions held that "one or two additional steps the council (of EU ministers) in the direction of the European Parliament would be required to obtain an agreement."

Fauchon intends to accelerate its development in the Middle East and make tea and chocolate its two main export products, having weathered the crisis and be able to break even.

With a turnover growth of 10% during the 2009-2010 fiscal year ended March 31, to 145 million euros, the luxury grocery relatively well through the crisis thanks to its business functions – which account for 18% of sales and grew 30% over the year – and thanks to Internet sales and business gifts which jumped 40%.

"I think the luxury food took its dimension of sharing and fun available," said Isabelle Capron, CEO of the company, in an interview with Reuters.

In times of crisis, "it differs less the purchase of a flash than a Ferrari," she smiled.

For the current year which started badly with the fall in April air traffic caused by the eruption of a volcano in Iceland, Isabelle Capron said it expects growth of 8%.

In terms of results, the company has managed to balance operational in 2009-2010 and is an operating profit of approximately 5% of sales within three years.

After a slow decline, the famous luxury shopping has been saved from bankruptcy in 2004 by Michel Ducros, company president – son of Gilbert Ducros, founder of the spices of the same name – which has acquired 90% the balance being taken by the management of the company and some private investors.

RENOVATION

Fauchon, shops and aging product line, then made a major restructuring led by its new CEO, an expert on marketing and advertising in schools formed the American Colgate.

"We renovated sites, product lines, image, teams, information systems (…) Everything has been reworked," she said.

Convinced of the power of a brand embodying the 120 years of French luxury food, Isabelle Capron initially wanted to give a new Fauchon strong visual identity made in black, white and fuchsia, while keeping the logo the effects of mirror from the 1930s.

"It should be quite radical and very visible," she says.

The renovation of the store's historic Place de la Madeleine in Paris, this revival has embodied the style codes closer to the fashion of the store.

Black lacquer, pink mirrors and tinted windows, the two shops of the place have also seen their product lines fresh completely redesigned.

To facilitate the transition in its stores, Fauchon opened a bakery and a bar area with caviar, pastries modernized with "collections" of flashes and bright colors for buttons or winks at the news (home sold lightning rainbow on the day of the "gay pride").The catering products are being reviewed while offering self-service will open in September.

If the activity is divided equally between the fresh produce and groceries, the latter, which requires less manpower, offers higher margins and can easily be exported.

TEA AND CHOCOLATE IN FIRST LINE

In the grocery store, what are tea and chocolate (which each accounted for 18% of group sales) that are the subject of attention and should be the engine of international growth.

"We invest in tea and chocolate, our two major providers of business growth and profitable recurring," said Isabelle Capron, inaugurated Monday a new line of chocolates numbered dubbed "Shock Made in F" produced in collaboration with chocolate Pascal Caffet, Best Worker of France in which Fauchon took 33% stake.

Fauchon carries today, 25% of its turnover in France and 50% in Japan, where it is established for decades through a partnership with department store chain Takashimaya but where growth prospects are limited.

To grow, the company looks to the Middle East, which accounts for 15% of its sales and where it intends to open over 20 stores in the next two years, in sales that could reach 30% of turnover within five years.

The appetite of this region in the world for sweet foods makes an ideal target for the confectionery and chocolate.

Besides France, Japan and the Middle East are the only regions in the world where Fauchon has a local manufacturing enabling it to offer fresh produce.Elsewhere, shops selling grocery products that can be exported.

BACK IN CHINA AND THE UNITED STATES

After a setback in China, where the company recently closed a large store opened in Beijing in 2007 – too large, misplaced – Fauchon has opted for a model shop "gifts" to smaller area. She has just opened one in Hong Kong and said to be in contact "advanced" with partners for openings in mainland China.

United States Fauchon also suffered a defeat and closed its shops in New York but wants to expand free "if you can find the right partner".

Russia, very hard hit by the crisis, also has the longer term, among the strategic development zones of Fauchon.

Oracle has announced a net quarterly profit above expectations, this suggests that the recovery of IT spending continues with companies investing in large infrastructure.

The specialist said that professional software maker Sun Microsystems servers – acquired in January while he was in deficit – helped, excluding special items, totaling more than $ 400 million operating profit.

"Oracle is ahead of its roadmap," said an analyst with Piper Jaffray.

The company earned for the fourth quarter of fiscal year 2009-2010 ended May 31 net income excluding items of $ 0.60 while analysts on average expected $ 0.54, according to Thomson Reuters IB / E / S.

Turnover increased 39% to $ 9.5 billion, a level in line with market expectations. Oracle has acquired Sun for 5.6 billion dollars.

"We did better than expected both in terms of sales as net income," said Jeff Epstein, CFO of Oracle, said in a statement.

Sales of new software rose 14% from a year ago to $ 3.1 billion.Three months ago, Oracle had told anticipate a sales growth of between 3% and 13%.

The Oracle President Charles Phillips said the group took "significant market share" in its German rival SAP software in business management.

After finishing down 2.03% to 22.22 dollars on Wall Street, the title of Oracle jumped more than 4% in trading after-hours trade.

The action, however, declined by some 16% since it hit a high of nine in mid-April.